Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bionano Genomics Inc (BNGO, Financial) reported a significant improvement in gross margin, reaching 46% in Q1 2025 compared to 32% in Q1 2024.
- The company successfully reduced its GAAP operating expenses by 66% year-over-year, reflecting effective cost-saving initiatives.
- The installed base of OGM systems grew by 9% year-over-year, indicating a steady increase in customer adoption.
- Bionano Genomics Inc (BNGO) maintained stable revenue from its existing customer base, despite a strategic shift away from new customer acquisition.
- The company achieved a strong start to 2025 with 95 publications in Q1, showcasing the growing recognition and validation of its technology.
Negative Points
- Total revenue for Q1 2025 decreased by 26% compared to Q1 2024, primarily due to the discontinuation of clinical services.
- The number of flowcells sold decreased by 15% year-over-year, indicating a decline in consumable sales.
- Bionano Genomics Inc (BNGO) faces challenges related to global trade uncertainties, which may impact future revenue and customer acquisition.
- The company experienced some attrition in its installed base as it moved away from supporting basic research applications.
- Despite improvements, the company still faces the challenge of increasing utilization rates among its routine user customer group.
Q & A Highlights
Q: Is MD Anderson a significant customer, and could their recent study lead to broader adoption of Optical Genome Mapping (OGM)?
A: R. Erik Holmlin, CEO, explained that MD Anderson is an existing user and has progressed from basic research to routine use of OGM. Their recent publication highlights OGM's impact, potentially influencing broader adoption and inclusion in medical guidelines.
Q: Can the current gross margin in the mid-40% range be sustained or improved throughout the year?
A: R. Erik Holmlin, CEO, stated that the current gross margin is expected to remain stable for the rest of the year. While there is potential for future improvement, significant shifts in cost structure are needed for further increases.
Q: How is the global trade situation affecting Bionano's supply chain and operations?
A: R. Erik Holmlin, CEO, mentioned that while there is some exposure to global trade issues, it is manageable. The company is monitoring input costs and tariffs, which have caused some deal slowdowns, but overall, the situation is under control.
Q: How has the Category 1 CPT Code impacted customer adoption and reimbursement for OGM applications?
A: R. Erik Holmlin, CEO, noted that the CPT Code, established by the AMA, reduces barriers to adoption by indicating that OGM is well-established. It is a key factor for prospective customers considering OGM.
Q: What steps are being taken to increase Saphyr utilization among existing routine users?
A: R. Erik Holmlin, CEO, outlined three main strategies: promoting proficiency in VIA software to increase capacity, supporting menu expansion for more sample types, and enhancing overall workflow proficiency to drive utilization.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
